Ensuring refunds go to the original payment method

Arketa supports two refund destinations: the client's original payment method (credit card or bank account) or account credit (store credit on the client's Arketa account). Refund outcomes depend on your settings and the option you select during the refund process.

Configure refund settings

To ensure refunds automatically go to the original payment method:

1. Go to Settings → General Business Settings
2. Open Subscription & Payment Settings
3. Toggle on Enable refund with account credit — this unlocks the option to choose between returning funds to the original payment method or issuing account credit when processing a refund

Correct a refund issued as account credit by mistake

If a refund was mistakenly issued as account credit, follow these two steps to fix it.

Step 1: Remove the account credit

1. Go to Customers → Clients and open the client's profile
2. Click Adjust Balance
3. Select Debit to remove the credit
4. Enter the amount, add a note explaining the adjustment, and save

Step 2: Refund to the original payment method

1. Open the client's Payments tab
2. Find the original payment and click Refund Payment
3. Enter the refund amount and choose Payment Method as the refund destination
4. Add a reason or note, then confirm

Special refund scenarios

Canceled events

Refunds for canceled paid events are automatically returned to the original payment method. They cannot be converted to account credit.

No-show fees

To prevent no-show fee refunds from defaulting to account credit, select Payment Method during the refund process.

Late-canceled bookings

Refund destinations depend on how the client paid:

• Paid (drop-in) services — refund goes back to the payment method
• Packages or subscriptions — refund is issued as class credits based on the pricing option used

Recurring contracts or passes

Refunding a payment does not automatically cancel a recurring contract or pass. To stop future charges, cancel the contract or pass separately: go to the client's summary page, click the three dots to the right of the subscription, and set it to cancel.

Frequently asked questions